Specification Topic: Setting business aims and objectives

Q1 Fill in the gaps

Businesses set themselves ______________ or targets to work towards. The specific aims that a
business draws up will depend on a number of factors, such as the size of the business, the amount of
finance the business has available and the type of product it sells.
Small businesses often lack _______________, so they might set an aim relating to ______________,
whereas a large business, in a secure _________________ position, would establish different aims,
such as _______________________ into a new town or city.
Businesses will also need to consider its __________________ before setting its aims; those facing
lots of competition might set an aim about increasing market _______________ or becoming the
market leader.

Choose from: competitors; survival; cash; expansion; share; financial; aims

Q2 Match it! Match the different business aims and objectives to the correct definition

a. To expand the business, possibly by opening new locations

2.1 Survival
in this country or abroad

b. To help society as a whole and make sure the business has

2.2 Profit maximisation
a positive effect on others

2.3 Growth c. To make as much profit as possible

2.4 Market share d. To increase the share price or pay high dividends

2.5 Customer satisfaction e. To keep the business running

f. To increase the proportion of the total market sales sold by

2.6 Social and ethical
the business

g. To make sure customers are as happy as possible with the

2.7 Shareholder value
good or service

Q3 Calculation time!

3.1 Brian’s Bikes has set itself the aim of having a 15% market share
The total sales in the local market are currently 2,000 bikes per year. How many bikes will
Brian need to sell in order to meet this aim?

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Specification Topic: Setting business aims and objectives

Q4 What’s your opinion? Explain your opinion to these questions

4.1 Why do you think businesses set aims and objectives?

4.2 What do you think is the most important aim for a start-up business?

4.3 Why would a business want to set the aim/objective of improving customer satisfaction?

4.4 What type of aim would a not-for-profit organisation set?

Q5 Match it! Match the aim/objective to the most appropriate size of business

Small start-up business Large and established

business

5.1 Expand internationally

5.2 Have enough sales to cover all costs

5.3 Have the highest market share

5.4 Increase shareholder value

5.5 Open one more branch or office

5.6 To act in the most ethical way,

regardless of profit

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